The crypto market is deep in the red, with a sharp sell-off dragging Bitcoin below the $90,000 mark to $89,390, its lowest level since April. What started as a routine correction has turned into a heavy downturn fueled by ETF outflows, whale-driven short positions, and thinning liquidity. Ethereum has lost its crucial $3,000 support, confirming a bearish phase, while BNB has slipped under $900. Solana is hovering near $130, Dogecoin is stuck around $0.15, and Cardano is trading close to $0.45. Still, not every coin is bleeding. XRP is holding steady above $2.11, and Chainlink remains firm above $13.11.
Millions Exit Libra and Flow Into Solana
Amid this crypto downtrend, wallets linked to the controversial Libra memecoin scandal are making bold, unexpected moves. Nearly $4 million has been withdrawn from the failing Libra ecosystem and quickly rotated into Solana. On-chain data shows two wallets, known as “Libra Deployer” (Defcy) and “Libra Wallet” (61yKS), snapping up an eye-popping $61.5 million worth of SOL at an average of $135, taking advantage of Solana’s dip during the broader market correction. Before the buys, these wallets were heavily stocked with stablecoins, holding a combined $57 million USDC primed for deployment.
A Scandal That Wiped Out Billions
These wallet movements come months after one of crypto’s biggest memecoin implosions. The Libra token, controversially endorsed by Argentine President Javier Milei, collapsed spectacularly when eight insider wallets cashed out $107 million in liquidity, triggering a $4 billion market wipeout in just hours. The fallout even prompted Argentine attorney Gregorio Dalbon to request an Interpol Red Notice for Libra creator Hayden Davis, citing concerns that his access to large funds could help him flee ongoing investigations.
Court Freezes, Sudden Reversals, and a Troubled History
The scandal soon reached U.S. courts, where Judge Jennifer Rochon froze $57.6 million in USDC belonging to crypto venture firm Kelsier Ventures and its founders, the Davis brothers. The lawsuit alleges they misled investors through the Libra token. Surprisingly, by August, the freeze was lifted after the judge concluded that releasing the funds wouldn’t harm victims since reimbursements were still possible.
Davis himself is no stranger to controversy. He previously launched the MELANIA memecoin and the Wolf of Wall Street-themed WOLF token, the latter crashing 99% in two days due to an insider allocation exceeding 80%.
Altcoin Hunting Amid Chaos
Now, despite investigations, lawsuits, and widespread backlash, Libra-linked wallets are shifting focus. Their latest moves indicate a transition from launching insider-heavy memecoins to aggressively accumulating altcoins like Solana during market dips. With millions still moving through these addresses, the industry continues to watch closely as the scandal evolves.
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FAQs
The market is down due to ETF outflows, whale-driven selling, and thinning liquidity, pushing Bitcoin, Ethereum, and many altcoins lower.
Libra wallets are moving millions from stablecoins into Solana, capitalizing on market dips despite ongoing lawsuits and past scandals.
Libra’s collapse wiped out $4 billion, froze $57.6M in USDC, and triggered legal action, shaking investor confidence in memecoins.
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